Global server sales fell 1.8% Y/Y in Q1, Gartner estimates - better than Q4's 5.4% drop, but...

Global server sales fell 1.8% Y/Y in Q1, Gartner estimates - better than Q4's 5.4% drop, but nothing to brag about. A 6.4% Y/Y drop in Western European shipments took a toll. IBM's share, hurt by mainframe weakness, fell 160 bps Y/Y to 28.1%, while H-P's (HPQ), hurt by its Itanium decline, fell 240 bps to 27.8%. Dell's (DELL) share held steady at 14.9%. The share of non top-5 vendors rose 410 bps Y/Y to 18.3%, as Internet giants continue to opt for inexpensive, low-power, home-grown servers.
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Comments (5)
  • Origa
    , contributor
    Comments (606) | Send Message
    This is Austerity and private companies cut backs in EU, not failed business plans.
    30 May 2012, 06:07 PM Reply Like
  • wiredless
    , contributor
    Comments (68) | Send Message
    If we could consistently put three to five times as many containers on a ship, less ships would sail. That does not equate to a declining cargo market. I disagree that the conclusion that "internet giants continue to opt for inexpensive, low-power" servers is the reason for the decline. Virtualization of servers is a better indicator. Gartner seems to be offering expertise that is focusing on out-moded metrics. Looking beyond the hardware to the software sales of server licenses from Microsoft, IBM, VMWare, Citrix offers a better view of this market than the traditional one.
    31 May 2012, 12:58 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1163) | Send Message
    Agree that virtualization is reducing unit shipments, but the Gartner figure covers revenue. Also, the fact Google, Amazon, Facebook, etc. are opting for home-grown servers is a reason for the declining share (collectively) of the industry's biggest vendors, rather than a decline in the size of the market.
    31 May 2012, 01:17 AM Reply Like
  • jtemple
    , contributor
    Comments (4) | Send Message
    You should also consider the cyclic nature of mainframe sales. Every end of cycle down turn since the late 90's has been attributed to other "industry trends", yet the cycle has always returned. The biggest factor in the long term downward trend in hardware sales is most likely the capacity of the machines growing faster than the demand for capcity in businesses. We sell more capacity every year but less physical stuff to supply that capacity.
    31 May 2012, 08:53 AM Reply Like
  • Livabjorn
    , contributor
    Comments (69) | Send Message
    How is price/performance included in the calculations?


    The mainframe of today is by far outperforming past mainframes, and it cost less.


    When I started in the IT-business in 1963 we sold HW for money and software for free.


    At some point in the future we'll se IBM and others sell SW for money and HW for free.
    31 May 2012, 02:50 PM Reply Like
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